Denver Health is on track to spend about $11 million more than it takes in this year, which is about a 1% loss on its $1.4 billion budget.
Sliding door of Denver County Jail in Denver on Tuesday, Jan. 23, 2024. The Denver Sheriff Department in partnership with the Colorado Division of Motor Vehicles launched the DMV2GO Program for the Denver County Jail. Denver Health could stop providing health care in the city’s jail and detox facility in 2026 because it says the contracts for those services don’t fully cover the health system’s costs.
Denver will buy about $43.4 million in services from Denver Health in the coming year, and grants or contracts typically allow about 10% for behind-the-scenes support, Lynne said. In this case, that would cost the city an additional $4.3 million, but the system ended up receiving nothing for indirect services at the end of budget talks, she said.
Since Denver doesn’t reimburse for the full cost of providing those services, the health system’s leaders have to decide how much they’re willing to “subsidize” the city, and what they’re willing to give up to do it, Lynne told the City Council committee. The jail contract, in particular, is expensive to support, because high employee turnover requires human resources to devote more time to it, she said.
Denver Health has taken steps to bring in more cash, including selling some properties it originally hoped to turn into clinical spaces, and most likely will sell a parking lot on its campus this year to help close financial gaps, Lynne said.Endorsement: Ballot Issue 2Q is a much needed sales tax for Denver Health
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